When you are considering acquiring a commercial property, there are a lot of factors to consider. Whether you intend to lease or purchase the property, ensuring that the property is suitable for you and your business is key to ensuring your future success.
That is why we have compiled our top tips for acquiring a commercial property.
Consider the suitability of the property
It’s important to define the reasons that you are purchasing the property so that you are able to assess if it meets your requirements. Acquiring a commercial property is an investment and it’s vital that it has all of the facilities you require, as well as being able to meet any future ambitions you have.
It is also worth considering who is purchasing the property, as this will affect your tax position.
Be aware of the type of property – leasehold or freehold
Commercial property tenures are often broken down into freehold and long leasehold.
Long leasehold is where your premises is part of a larger complex which is owned and controlled by a third party, known as either the landlord or freeholder. Freehold, however, ensures that you own the property outright, meaning that you will be responsible for any repairs, maintenance and insurance.
It’s important to understand that when taking on a long leasehold, that you must consider the lease term (how long is it until the lease expires?), ground rent, which is payable every year to the landlord, and how often the ground rent is reviewed.
The structure of a lease can also have an impact on your stamp duty liabilities, so it’s important to factor this into any agreement.
Seek expert advice
Before engaging in a contract, ensure that you seek expert legal advice. A commercial property lease or purchase is a significant decision and one that will impact your business going forward. Expert guidance and advice can prevent complications further along in the process.
For help and advice with matters relating to commercial property, contact our expert team today.